Comment
Author: Admin | 2025-04-28
IncomeBand0%Up to £12,570Personal allowance20%£12,571 - £50,270Basic rate40%£50,271 - £125,140Higher rate45%£125,141+Additional rateYour first £12,570 of income is tax-free for most taxpayers. This allowance is not available for taxpayers with an annual income more than £125,140.Do crypto exchanges report to HMRC? Because of cryptocurrency’s pseudo-anonymous nature, many investors believe that it’s impossible for the HMRC to track cryptocurrency transactions. However, it’s important to remember that HMRC has a data sharing program in place with major exchanges—meaning that tax authorities can access KYC (Know Your Customer) information and crypto transaction data. Recently, Coinbase sent an email to clients who had £5,000 of fiat inflows or more in their account. The email said that transaction details would be shared with HMRC.It’s likely that other exchanges operating in the United Kingdom share customer information with tax authorities upon request. Can the HMRC track my cryptocurrency?In recent years, the HMRC has taken steps to curb crypto tax evasion. The HMRC has requested and obtained customer data from major exchanges and sent ‘nudge’ letters to crypto investors to encourage them to pay capital gains and income tax.What happens if I don’t report my crypto gains and losses in the UK?Under HMRC rules, taxpayers who do not disclose gains could face a 20% capital gains tax plus any interest and penalties of up to 200% of any taxes due. Those found to have evaded the tax could also face criminal charges and jail time.There’s no guarantee of what will or will not happen if you fail to file your cryptocurrency taxes with HMRC. However, it’s recommended to stay compliant by properly filing all of your capital gains and income.If you haven’t been reporting your gains or losses in previous years, you can get everything in order by filing an amended self-assessment tax return.Tax-free cryptocurrency transactions Wondering what cryptocurrency
Add Comment